My Insurance Does Not Cover Me for Tropical Storm Damage. – Barry

“Dear Lewis,

I currently have debt on two homes. I move to Missouri 7 years ago with only a first mortgage to start a business. The business struggled for about 1.5 years and in the last year. I purchased a home when I moved which has a first and second mortgage totaling $152,252.00 I was unable to sell my home in Delaware which I owe about $112,442.00 on a first mortgage and $8,015.00 on as second mortgage which I rented but the first two years I had two bad renters so I only received rent for about 9 months of that time.

I have accumulated about $36,472.00 in credit card debt and I currently owe on a medical debt of about $10,864.00. The hurricane that hit the east coast including Delaware damaged my home there. The insurance company just informed me that there is a clause in my insurance agreement for tropical storms and the damage does not reach the deductible so I now have a leaky roof and no means to repair it. I completed the online Means calculatio n and it says that I qualify to apply for bankruptcy but it says I have a disposable income of $222.00 monthly.

Could I declare bankruptcy and keep my home in Missouri and my 1999 Toyota Sienna mini-van and 1994 Dodge 350 Ram van and resolve the debt on my house in Delaware, the credit card debt and the medical debt?
Is there a better way?


Dear Barry,

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Unfortunately, it is hard for me to determine your eligibility for bankruptcy. There is so much more information needed. I have no idea of your income, your household size, any potential assets, and a full picture of your liabilities.

Generally speaking, either chapter 7 or chapter 13 bankruptcy could help with your credit card, medical, and mortgage debt. In either chapter, you should be able to surrender the Delaware home and no longer be responsible for the debt. Also, chapter 7 would most likely eliminate all of the medical and credit card debt. In chapter 13, you may have to pay a portion of the debt over 36 or 60 months.

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But only a Missouri bankruptcy attorney can best qualify you for bankruptcy.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

If you have a bankruptcy question you’d like to ask just use the online form.

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